Hi,
Not sure if this is the correct forum to ask, I hope it is.
I have just recently taken a contract inside IR35 via an umbrella company. I am now not bringing in any money to my limited company, but there are still some funds in there that I would like to use to claim a few expenses. I have asked my accountant and I was told
"For a new phone and laptop at this stage, HMRC would argue that they are in fact personal purchases as you would not need these for your company at the moment. You should never claim a mobile phone through the company but for the laptop you could either buy it personally now and if you go back to working through your company in a couple of months claim it as a cash expense then or wait to purchase this until you are working through your company again."
I have put through mobile phones previously, so am a little confused what to do. It is Black Friday and I really wanted to get a new laptop but my contract inside IR35 is going to be until May next year, so I am not likely to be contracting outside IR35 for a while, if ever.
Sorry for the long post, I really just wanted to know if my accountant's advice is correct? Normally their advice is spot on but these are new circumstances and I really was looking forward to the upgrade
Thanks
Not sure if this is the correct forum to ask, I hope it is.
I have just recently taken a contract inside IR35 via an umbrella company. I am now not bringing in any money to my limited company, but there are still some funds in there that I would like to use to claim a few expenses. I have asked my accountant and I was told
"For a new phone and laptop at this stage, HMRC would argue that they are in fact personal purchases as you would not need these for your company at the moment. You should never claim a mobile phone through the company but for the laptop you could either buy it personally now and if you go back to working through your company in a couple of months claim it as a cash expense then or wait to purchase this until you are working through your company again."
I have put through mobile phones previously, so am a little confused what to do. It is Black Friday and I really wanted to get a new laptop but my contract inside IR35 is going to be until May next year, so I am not likely to be contracting outside IR35 for a while, if ever.
Sorry for the long post, I really just wanted to know if my accountant's advice is correct? Normally their advice is spot on but these are new circumstances and I really was looking forward to the upgrade
Thanks
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